Edgar Filing: SWISS HELVETIA FUND INC

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Directors and Officers

Paul Hottinguer Rodolphe E. Hottinger
CHAIRMAN PRESIDENT
Eric R. Gabus+ CHIEF EXECUTIVE OFFICER
VICE CHAIRMAN (NON OFFICER) Rudolf Millisits
Paul R. Brenner, Esq. SENIOR VICE PRESIDENT
DIRECTOR TREASURER
Alexandre de Takacsy Philippe R. Comby, CFA
DIRECTOR VICE PRESIDENT
Claude Frey Edward J. Veilleux
DIRECTOR VICE PRESIDENT
Claude Mosseri-Marlio* SECRETARY
DIRECTOR Leslie K. Klenk
Didier Pineau-Valencienne* ASSISTANT SECRETARY
DIRECTOR Frederick Skillin
Stephen K. West, Esq. ASSISTANT TREASURER
DIRECTOR Sara M. Morris
Samuel B. Witt, Esq.** ASSISTANT TREASURER
DIRECTOR Peter R. Guarino, Esq.
CHIEF COMPLIANCE OFFICER

-------

Baron Hottinger
DIRECTOR EMERITUS

*AUDIT COMMITTEE MEMBER +GOVERNANCE/NOMINATING
**AUDIT COMMITTEE CHAIRMAN COMMITTEE CHAIRMAN

INVESTMENT ADVISOR
Hottinger Capital Corp.
1270 Avenue of the Americas, Suite 400
New York, New York 10020
(212) 332-7930

ADMINISTRATOR
Forum Administrative Services, LLC
(member Citigroup Global Transaction Services)

CUSTODIAN
Swiss American Securities Inc.

TRANSFER AGENT
American Stock Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, NY 10038

LEGAL COUNSEL
Stroock & Stroock & Lavan LLP

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP

THE INVESTMENT ADVISOR
The Swiss Helvetia Fund, Inc. (the "Fund") is managed by Hottinger Capital
Corp., which belongs to the Hottinger Group.

The Hottinger Group dates back to Banque Hottinguer, which was formed in Paris
in 1786 and is one of Europe's oldest private banking firms. The Hottinger
Group has remained under the control of the Hottinger family through seven
generations. It has offices in New York, Zurich, Luxembourg, Toronto, Geneva,
Vienna, London, Sion and the Bahamas.

EXECUTIVE OFFICES
The Swiss Helvetia Fund, Inc.
1270 Avenue of the Americas, Suite 400
New York, New York 10020
1-888-SWISS-00 (1-888-794-7700)
(212) 332-2760

FOR INQUIRIES AND REPORTS:
1-888-SWISS-00 (1-888-794-7700)
Fax: (212) 332-7931
email: swz@swz.com

WEBSITE ADDRESS
http://www.swz.com

THE FUND
The Swiss Helvetia Fund, Inc. is a non-diversified, closed-end investment
company whose objective is to seek long-term capital appreciation through
investment in equity and equity-linked securities of Swiss companies. The Fund,
listed on the New York Stock Exchange under the symbol "SWZ," is managed by
Hottinger Capital Corp.

The Fund had a Morningstar overall rating of three stars as of March 31, 2005.
Of course, past performance is no guarantee of future results. See the footnote
on page 4 for more information.

Net Asset Value is calculated daily by 6:15 P.M. (Eastern Time). The most
recent calculation is available by calling 1-888-SWISS-00 or by accessing our
Website. Net Asset Value is also published weekly in BARRON'S, the Monday
edition of THE WALL STREET JOURNAL and the Sunday Edition of THE NEW YORK TIMES.
1

THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders

GLOBAL MARKET OVERVIEW
Global equity markets entered a more volatile phase in the first quarter of
2005 as both the economic growth and the bull market cycles started to age.
Higher corporate spending and lower interest rates were supportive (albeit at a
declining level) but the lack of economic stimulus in the US, high consumer
debt levels and the lack of real wage growth created fears about economic
activity.

In the fixed income market, increasing Fed funds rates did not cause
corresponding increases in US government yields, defying the predictions of
most analysts. Much of the US deficit was being financed by Asia out of its
excess savings and by oil producing nations out of their windfall from high
energy prices.

Inflation expectations in the US, as reflected in the price of Treasury
Inflation Protected Securities, are at 2.7%. We expect this to be revised
upward as corporations become more able to pass on cost increases to their
customers and as productivity slows. The long-term outlook for inflation is
relatively tame however. Chinese industrialization keeps a lid on prices
through labor productivity and demographics in the developed countries favor
slower consumer spending.

The outlook for Treasuries is better than for corporate debt as yield
spreads are very low and do not reflect the impending downturn in the credit
market.

Overseas, European and Swiss government debt has outperformed their US
counterpart during the first quarter of the year due to the strength of the
currency and a much muted perspective for economic activity. This bodes well
for European equities. Monetary liquidity is more supportive than in the US,
since the European Central Bank (ECB) is not expected to change the level of
the interest rates soon. Actually, in US dollar terms, European equities have
outperformed US equities despite an improvement in the US currency.

SWISS ECONOMIC NOTES
Growth in the Swiss Gross Domestic Product (GDP) for 2004 ended up being
smaller than expected. The economy grew by 1.2% for the whole year versus the
Swiss National Bank's (SNB) forecast of close to 2%. The Swiss economy lost
momentum especially at the end of 2004. In the last quarter, the GDP declined
by -0.1%, as compared to the last quarter of 2003, a departure from the
positive comparable growth of all the previous quarters.

The SNB has lowered its expectations from its last meeting in December
2004. It now expects economic growth to be around 1.5% for 2005 versus its
previous projection of 1.5%-2%. The main reasons given for this change were
high oil prices and "an economic recovery in Europe that might fall below
expectations."
2

THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (continued)

The Swiss unemployment rate increased to 4.1% in February 2005 (from 4% in
December 2004) and decreased to 3.9% in March 2005. The seasonally adjusted
rate remained flat during the last quarter at 3.8%.

The Consumer Price Index (CPI) fell 0.3% to 1.2% from November 2004 to
January 2005 but increased again to 1.4% in March, strongly influenced by the
latest increase in oil prices. Given that the economic upswing has been delayed
and that inflation is likely to remain low in the medium term, the SNB, at its
latest meeting on March 17, 2005, decided to leave the target range for the
three-month LIBOR rate unchanged at 0.25-0.75%. Even though the SNB lifted
short-term interest rates twice in 2004, real short-term interest rates have
been negative for two and a half years. This is the longest period of negative
real interest rates yet recorded in Switzerland (at least during the past 25
years) as the SNB noted in its latest quarterly bulletin.

Yields on longer term bonds continued to slip until the beginning of
February. The yield on the ten-year Swiss Confederation bonds fell from 2.4% at
the end of December 2004 to a low level of 2.0% in the beginning of February.
It has increased since then and ended the quarter at 2.3%.

CURRENCY
After approaching its record low in December 2004 with an exchange rate of
1.14 against the Swiss franc, the US dollar rebounded and finished the quarter
at 1.19. This rebound was attributable both to short covering and to a widening
of the short-term differential in interest rates.

The euro area continued to show no sign of a shift towards an easier
monetary policy. The ECB continues to keep its main refinancing rate at 2%, a
rate that has been in place since June 2003. During the first quarter, the euro
slightly depreciated against the US dollar (from 1.35 to 1.29) and appreciated
by 1% against the Swiss franc.

SWISS MARKET REVIEW AND FUND PERFORMANCE
The Swiss market performed well during the first quarter, with a return of
5.25% for the Swiss Performance Index (SPI). Small capitalization stocks (below
$700 million of market capitalization) had a very strong performance during the
quarter with a 15% return in local currency. The strong money flows into small
capitalization stocks have come from speculation on mergers and acquisitions
activity. Mid sized companies (from $700 million to $2 billion) had more modest
returns, appreciating 8.0% in local currency, but were still strong in
comparison to the 5.0% return for the whole market.

News from the Swiss healthcare sector was positive on average, especially
for Roche Holding AG and less so for Novartis AG. The Swiss biotech companies
outperformed the US biotech index. The food companies (Nestle AG and Lindt &
Sprungli AG) performed, in general, better than or on par with their peers in
Europe and the US. The energy
3

THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (continued)

sector was strong, albeit stock prices entered a period of consolidation in
2005.

Financial stocks outperformed the market after better than expected results
from UBS AG and the recovery at Credit Suisse Group, where management reassured
the market about the company's capital position and announced a large share
buy-back. The performance of luxury goods companies was flat for the quarter.

The Swiss Helvetia Fund lagged the SPI during the first quarter by 1.7%,
due mainly to underweight positions in the large capitalization food, bank and
insurance sectors, underweight positions in recovering cyclical companies such
as ABB Ltd. and Adecco SA, and overweight positions in mid capitalization
companies which did not experience the expected benefits from mergers and
acquisitions. As the economic cycle matures cyclical companies, especially in
the small capitalization area, are expected to consolidate and both mid
capitalization quality stocks and large capitalization defensive stocks should
exhibit outperformance.

The Fund's cumulative performance continues to be superior to its Swiss
peers and its benchmark. As of March 31, 2005 the Fund had a rating of three
stars from Morningstar*.

*Morningstar is an independent fund performance monitor. Its ratings reflect
historic risk-adjusted performance and may change monthly. Its ratings of one
(low) and five (high) stars are based on a fund's three- and five-year average
annual total returns with fee adjustments, and a risk factor that reflects fund
performance relative to three-month Treasury Bill monthly returns. Only 33% of
the funds in an investment category may receive four or five stars. As of March
31, 2005, there were 9 funds in the Fund's asset category rated by Morningstar.
4

THE SWISS HELVETIA FUND, INC.
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Letter to Stockholders (continued)

----------------------------------------------------------------------------------------------------------------------
PEER GROUP/INDICES PERFORMANCE COMPARISON IN SWISS FRANCS/1/
----------------------------------------------------------------------------------------------------------------------
YTD AS TOTAL RETURN AS OF YEAR ENDED DECEMBER 31, CUMULATIVE
OF -------------------------------------------------------- PERFORMANCE
03/31/05 2004 2003 2002 2001 2000 1999 1998 1997 12/31/96-03/31/05
---------------------------------- -------- ----- ------ ------- ------- ------ ------ ------ ------ -----------------

SWISS HELVETIA FUND 3.57% 7.75% 22.54% -20.40% -22.91% 14.06% 14.70% 15.57% 53.99% 95.38%
Swiss Performance Index (SPI) 5.25% 6.89% 22.06% -25.95% -22.03% 11.91% 11.69% 15.36% 55.19% 77.41%
Swiss Market Index (SMI) 4.15% 3.74% 18.51% -27.84% -21.11% 7.47% 5.71% 14.28% 58.93% 50.40%
Switzerland iShares/2/ (Formerly
called Webs Switzerland) 4.51% 6.34% 19.14% -26.23% -23.12% 7.75% 12.22% 11.74% 47.79% 45.99%
CS Equity Swiss Blue Chips/3,7/ 4.31% 2.75% 18.13% -28.75% -22.12% 10.97% 7.57% 14.21% 59.90% 53.15%
UBS (CH) Equity Fund/4,7/ 5.10% 5.00% 18.14% -26.02% -22.04% 7.42% 6.43% 12.75% 55.94% 51.15%
Pictet (CH) -- Swiss Equities/5,7/ 5.30% 7.05% 20.10% -27.93% -22.35% 7.34% 9.38% 11.05% 55.65% 53.75%
Saraswiss (Bank Sarasin)/6,7/ 5.07% 2.93% 19.64% -28.51% -24.45% 9.72% 7.10% 14.41% 53.57% 44.29%

/1 /PERFORMANCE OF FUNDS IS BASED ON CHANGES IN THE FUND'S NAV OVER A SPECIFIED
PERIOD. IN EACH CASE TOTAL RETURN IS CALCULATED ASSUMING REINVESTMENT OF ALL
DISTRIBUTIONS. FUNDS LISTED, OTHER THAN SWITZERLAND ISHARES, ARE NOT REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION. PERFORMANCE AND DESCRIPTIVE
INFORMATION ABOUT THE FUNDS ARE DERIVED FROM THEIR PUBLISHED INVESTOR REPORTS
AND WEBSITES, WHICH ARE SUBJECT TO CHANGE.
/2/ SWITZERLAND ISHARES ARE TRADED ON THE NEW YORK STOCK EXCHANGE AND INVEST IN
MOST OF THE SAME STOCKS LISTED IN THE MORGAN STANLEY CAPITAL INTERNATIONAL
SWITZERLAND INDEX. THESE STOCKS REPRESENT SWITZERLAND'S LARGEST AND MOST
ESTABLISHED PUBLIC COMPANIES, ACCOUNTING FOR APPROXIMATELY 85% OF THE MARKET
CAPITALIZATION OF ALL OF SWITZERLAND'S PUBLICLY TRADED STOCKS. PERFORMANCE OF
ISHARES IS CALCULATED BASED UPON THE CLOSING PRICES OF THE PERIOD INDICATED
USING THE SWISS FRANC/U.S. DOLLAR EXCHANGE RATE AS OF NOON EACH SUCH DATE, AS
REPORTED BY BLOOMBERG. SUCH EXCHANGE RATES WERE AS FOLLOWS: 12/31/96 = 1.35,
12/31/97 = 1.46, 12/31/98 = 1.38, 12/31/99 = 1.60, 12/31/00 = 1.61, 12/31/01 =
1.67, 12/31/02 = 1.39, 12/31/03 = 1.24 AND 12/31/04 = 1.14, 3/31/05 = 1.19.
/3/ THIS FUND INVESTS IN EQUITIES ISSUED BY LEADING SWISS COMPANIES. STOCK
SELECTION IS BASED ON ECONOMIC, SECTOR AND COMPANY ANALYSES. PREFERENCE IS
GIVEN TO LARGE-CAP COMPANIES.
/4/ THIS FUND INVESTS PRIMARILY IN MAJOR SWISS COMPANIES. QUALITY CRITERIA USED
FOR DETERMINING RELATIVE WEIGHTINGS OF COMPANIES INCLUDE: STRATEGIC
ORIENTATION, STRENGTH OF MARKET POSITION, QUALITY OF MANAGEMENT, SOUNDNESS OF
EARNINGS, GROWTH POTENTIAL AND POTENTIAL FOR IMPROVING SHAREHOLDER VALUE. THE
INVESTMENT OBJECTIVE SEEKS TO PROVIDE RESULTS THAT ARE ALIGNED WITH THE SPI
PERFORMANCE.
/5/ THIS FUND INVESTS IN SHARES OF SWISS COMPANIES LISTED ON THE SWISS STOCK
EXCHANGE (SWX) AND INCLUDED IN THE SPI.
/6/ THIS FUND INVESTS IN SHARES OF SWISS COMPANIES. IT WEIGHTS INDIVIDUAL
SECTORS RELATIVE TO THE SPI ON THE BASIS OF THEIR EXPECTED RELATIVE
PERFORMANCE. IT FOCUSES ON LIQUID BLUE-CHIP STOCKS.
/7/ THESE FUNDS ARE NOT AVAILABLE FOR U.S. RESIDENTS OR CITIZENS.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
5

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Letter to Stockholders (concluded)

------------------------------------------------------------
QUARTER ENDED
MARCH 31, 2005
--------------------------------------------- --------------

PERFORMANCE IN SWISS FRANCS
Swiss Performance Index (SPI) 5.25%
Swiss Helvetia Fund
Based on Net Asset Value 3.57%
CHANGE IN US DOLLAR VS. SWISS FRANC 4.82%
SWISS HELVETIA FUND PERFORMANCE IN US DOLLARS
Based on Net Asset Value -1.19%
Based on Market Price -5.02%
S & P 500 Index -2.15%
MSCI EAFE Index -0.16%
Lipper European Fund Index (10 Largest) 0.70%
Lipper European Fund Universe Average 1.10 %

OUTLOOK / STRATEGY
Equity markets are facing more risk going forward as questions arise about
the strength of US consumer spending, about short-term inflation and the Fed's
reaction to it, and about how China will manage a soft landing and when it will
modify its exchange rate regime. In this environment, valuations are expected
to contract. Corporations with stable earnings growth and high free cash flow
generation are the ones most likely to resist that trend. The defensive nature
of the Swiss market (healthcare and food) should play to its advantage.

STOCK REPURCHASE PROGRAM
Pursuant to authorization by its Board of Directors, the Fund began open
market purchases of its common stock on the New York Stock Exchange in 1999 and
has continued purchases in each subsequent year. The principal purpose of the
stock repurchase program is to enhance stockholder value by increasing the
Fund's net asset value per share without creating a meaningful adverse effect
upon the Fund's expense ratio and without realizing capital gains in order to
fund the repurchases. The Board has authorized the purchase of up to 250,000
shares in 2005. During the quarter ended March 31, 2005, there were no
repurchases.

Sincerely,
/s/
Paul Hottinguer
CHAIRMAN

/s/
Rodolphe Hottinger
PRESIDENT AND CHIEF EXECUTIVE OFFICER

March 31, 2005
6

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) March 31, 2005

Percent
No. of of Net
Shares Security Value Assets
------------------------------------------------------------------------------
COMMON STOCKS -- 96.82%

BANKS -- 16.70%

458,000 CREDIT SUISSE GROUP/2/
REGISTERED SHARES $ 19,731,773 4.86%
A global operating financial group.
(Cost $15,309,694)

33,406 ST. GALLER KANTONALBANK
REGISTERED SHARES 8,786,627 2.17%
A Swiss regional bank that offers
retail, commercial, private and
institutional banking. It also
provides asset management and
financial planning services.
(Cost $7,655,440)

435,000 UBS AG/2/
REGISTERED SHARES 36,861,314 9.09%
Largest Swiss bank. It offers
consumer, business and
construction loans, mortgages,
mutual funds, export and structured
finance and securities brokerage
services, advises on mergers and
acquisitions, invests pension funds
and sponsors credit cards.
(Cost $7,578,949)

94,000 VONTOBEL HOLDING AG
REGISTERED SHARES 2,346,254 0.58%
Provides investment, banking and
consulting services to private and
institutional customers.
(Cost $2,286,229)
------------- -------
67,725,968 16.70%

Percent
No. of of Net
Shares Security Value Assets
------------------------------------------------------------------------

BASIC RESOURCES -- 0.50%

20,324 PRECIOUS WOODS HOLDING AG/1/
BEARER SHARES $ 2,029,160 0.50%
Through subsidiaries, manages
tropical forests using ecologically
sustainable forest management
methods. Harvests tropical trees
and processes them into lumber.
(Cost $2,039,773)
------------- -------
2,029,160 0.50%
BIOTECHNOLOGY -- 3.30%

126,973 ACTELION LTD./1/
REGISTERED SHARES 12,890,119 3.18%
Pharmaceutical company that
develops and markets synthetic
small-molecule drugs against
diseases related to the endothelium.
(Cost $8,781,182)

12,273 CYTOS BIOTECHNOLOGY AG/1/
REGISTERED SHARES 484,989 0.12%
Develops and produces
biopharmaceuticals. Produces
vaccines that immunize the patient
against disease-related proteins.
This instructs the immune system to
produce antibodies to reverse or
prevent disease progression.
(Cost $439,327)
------------- -------
13,375,108 3.30%

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) March 31, 2005
(continued)

Percent
No. of of Net
Shares Security Value Assets
---------------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)

CHEMICALS -- 8.45%

35,000 CIBA SPECIALTY CHEMICALS AG
REGISTERED SHARES $ 2,272,842 0.56%
Develops, manufactures, and
markets specialty chemicals.
(Cost $2,562,063)

15,488 SIKA AG
BEARER SHARES 11,590,986 2.86%
Leading producer of construction
chemicals.
(Cost $3,761,320)

194,931 SYNGENTA AG/1,2/
REGISTERED SHARES 20,426,950 5.03%
Produces herbicides, insecticides
and fungicides, and seeds for field
crops, vegetables, and flowers.
(Cost $12,135,720)
------------- -------
34,290,778 8.45%
CONSTRUCTION -- 2.06%

135,143 HOLCIM LTD.
REGISTERED SHARES 8,339,431 2.06%
Produces and markets various
building materials, in addition to
providing consulting and
engineering services in all areas of
the cement manufacturing process.
(Cost $6,153,257)
------------- -------
8,339,431 2.06%

Percent
No. of of Net
Shares Security Value Assets
------------------------------------------------------------------

FOOD & BEVERAGES -- 15.14%

300 LINDT & SPRUNGLI AG
REGISTERED SHARES $ 4,568,336 1.13%
Major manufacturer of premium
Swiss chocolates.
(Cost $1,196,399)

207,000 NESTLE AG/2/
REGISTERED SHARES 56,834,256 14.01%
Largest food and beverage
processing company in the world.
(Cost $12,427,541)
------------- -------
61,402,592 15.14%
INDUSTRIAL GOODS & SERVICES -- 9.64%

60,000 ADECCO SA
REGISTERED SHARES 3,307,325 0.81%
Leading personnel and temporary
employment company.
(Cost $3,260,846)

2,055 BELIMO HOLDING AG
REGISTERED SHARES 1,317,241 0.32%
World market leader in damper and
volume control actuators for
ventilation and air-conditioning
equipment.
(Cost $450,523)

2,409 KABA HOLDINGS AG
BEARER SHARES 677,083 0.17%
Provides mechanical and electronic
security systems.
(Cost $433,442)

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) March 31, 2005
(continued)

Percent
No. of of Net
Shares Security Value Assets
----------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)

INDUSTRIAL GOODS & SERVICES -- (CONTINUED)

49,854 KUEHNE & NAGEL INTERNATIONAL AG
REGISTERED SHARES $ 10,791,452 2.66%
Operates sea freight, land and rail
transportation businesses and
warehousing and distribution
facilities.
(Cost $2,566,808)

6,598 SGS SOCIETE GENERALE DE
SURVEILLANCE HOLDING SA
REGISTERED SHARES 4,771,773 1.18%
Provides a variety of industrial
inspection, analysis, testing and
verification services worldwide.
(Cost $1,709,324)

8,496 SIG HOLDING AG
REGISTERED SHARES 1,824,797 0.45%
Manufactures packaging machinery
through subsidaries. Produces
beverage bottling machines,
beverage cartons, and filling
machines.
(Cost $1,838,620)

35,047 SULZER AG/2/
REGISTERED SHARES 15,143,221 3.73%
Manufactures and sells industrial
equipment, machinery, and medical
devices.
(Cost $12,445,442)

615,035 VON ROLL HOLDING AG/1/
BEARER SHARES 1,284,871 0.32%
Manufactures insulation and
composite materials and offers
waste treatment services.
(Cost $904,319)
------------- -------
39,117,763 9.64%

Percent
No. of of Net
Shares Security Value Assets
----------------------------------------------------------------

INSURANCE -- 4.73%

68,088 SWISS REINSURANCE COMPANY
REGISTERED SHARES $ 4,892,809 1.21%
Second largest reinsurance
company in the world.
(Cost $4,038,842)

81,100 ZURICH FINANCIAL SERVICES AG/2/
REGISTERED SHARES 14,282,146 3.52%
Offers property, accident, health,
automobile, liability, financial risk
and life insurance and retirement
products.
(Cost $14,353,611)
------------- -------
19,174,955 4.73%
MEDICAL TECHNOLOGY -- 0.14%

16,867 PHONAK HOLDING AG
REGISTERED SHARES 583,036 0.14%
Designs and produces wireless
analog and digital hearing aids,
transmitters, remote controls,
microphones and receivers for use
in wireless communications within
broadcasting and sports.
(Cost $143,401)
------------- -------
583,036 0.14%
PHARMACEUTICALS -- 24.40%

1,149,000 NOVARTIS AG/2/
REGISTERED SHARES 53,791,593 13.26%
One of the leading manufacturers of
pharmaceutical and nutrition
products.
(Cost $13,461,235)

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) March 31, 2005
(continued)

Percent
No. of of Net
Shares Security Value Assets
----------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)

PHARMACEUTICALS -- (CONTINUED)

420,000 ROCHE HOLDING AG/2/
DIVIDEND RIGHTS CERTIFICATES $ 45,174,931 11.14%
Worldwide pharmaceutical
company.
(Cost $8,467,363)
------------- -------
98,966,524 24.40%
RETAILERS -- 1.06%

24,767 GALENICA HOLDING AG
REGISTERED SHARES 4,290,952 1.06%
Manufactures and distributes
prescription and over-the-counter
drugs, toiletries and hygiene
products.
(Cost $3,158,881)
------------- -------
4,290,952 1.06%
TECHNOLOGY -- 3.76%

14,238 HUBER & SUHNER AG
REGISTERED SHARES 1,037,478 0.25%
Manufactures a wide range of
products, extending from cables for
energy and electrical submission to
special products such as rubber.
(Cost $815,503)

230,449 LOGITECH INTERNATIONAL SA/1,2/
REGISTERED SHARES 14,065,916 3.47%
Manufactures personal computer
input devices, as well as producing
trackballs, desktop publishing
programs and related software.
(Cost $8,396,934)

Percent
No. of of Net
Shares Security Value Assets
----------------------------------------------------------------

TECHNOLOGY -- (CONTINUED)

23,813 TEMENOS GROUP AG/1/
REGISTERED SHARES $ 149,443 0.04%
Provides integrated software for the
banking sector. Develops,
distributes, implements, and
supports its process-oriented real-
time enterprise software designed
for the management of
administrative tasks in Europe,
North America, Asia, and the Middle
East.
(Cost $159,743)
------------- -------
15,252,837 3.76%
UTILITY SUPPLIERS -- 6.94%

500 AARE-TESSIN AG FUR ELEKTRIZITAT
REGISTERED SHARES 805,437 0.20%
Generates, transmits, and
distributes electricity in Switzerland
and neighboring countries. Provides
environmental technology and
engineering services.
(Cost $859,335)

22,445 BKW FMB ENERGIE AG
REGISTERED SHARES 12,805,269 3.16%
Generates and distributes electricity.
Produces electricity using nuclear,
hydroelectric, solar, biomass and
wind energy.
(Cost $12,145,317)

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) March 31, 2005
(concluded)

Percent
No. of of Net
Shares Security Value Assets
----------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)

UTILITY SUPPLIERS -- (CONTINUED)

350 CENTRALSCHWEIZ KRAFTWERKE
BEARER SHARES $ 1,321,420 0.33%
Supplies electric power, operates
and maintains distribution network
facilities, constructs and installs
equipment, and offers consulting
services to its clients.
(Cost $1,302,180)

17,144 ELEKTRIZITAETS-GESELLSCHAFT
LAUFENBURG AG/2/
REGISTERED SHARES 13,182,713 3.25%
Generates and sells electricity.
Operates nuclear and hydroelectric
generating plants. Sells excess
power throughout Europe.
(Cost $12,807,688)
------------- -------
28,114,839 6.94%
TOTAL COMMON STOCKS
(Cost $186,046,251)* $ 392,663,943 96.82%
OTHER ASSETS LESS LIABILITIES 12,893,540 3.18%
------------- -------
NET ASSETS $ 405,557,483 100.00%
============= =======

--------------------------------------------------------------------------------
/1/NON-INCOME PRODUCING SECURITY.
/2/ONE OF THE TEN LARGEST PORTFOLIO HOLDINGS.
*COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION (DEPRECIATION)
CONSISTS OF:

GROSS UNREALIZED APPRECIATION $207,067,013
GROSS UNREALIZED DEPRECIATION (449,321)
------------
NET UNREALIZED APPRECIATION $206,617,692
============

THE SWISS HELVETIA FUND, INC.
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Dividend Reinvestment Plan (Unaudited)

THE PLAN
The Fund's Dividend Reinvestment Plan (the "Plan") offers a convenient way for
you to reinvest capital gains distributions and ordinary income dividends,
payable in whole or in part in cash in additional shares of the Fund.

Some of the Plan features are:
. Once you enroll in the Plan, all of your future distributions and
dividends payable in whole or in part in cash will be automatically
reinvested in Fund shares in accordance with the terms of the Plan.
. You will receive shares valued at the lower of the Fund's net asset value
or the Fund's market price as described below. The entire amount of your
distribution or dividend will be reinvested automatically in additional
Fund shares. For any balance that is insufficient to purchase full shares
of the Fund, your account will be credited with fractional shares.
. Your shares will be held in an account with the Plan agent. You will be
sent regular statements for your records.
. You may terminate participation in the Plan at any time.
The following are answers to frequently asked questions about the Plan.

HOW DO I ENROLL IN THE PLAN?
If you are holding certificates for your shares, contact American Stock
Transfer & Trust Company (AST) at the address shown below. If your shares are
held in a brokerage account, contact your broker. Not all brokerage firms
permit their clients to participate in dividend reinvestment plans such as the
Plan and, even if your brokerage firm does permit participation, you may not be
able to transfer your Plan shares to another broker who does not permit
participation. Your brokerage firm will be able to advise you about its
policies.

HOW DOES THE PLAN WORK?
The cash portion of any dividends or distributions you receive, payable in
whole or in part in cash, will be reinvested in shares of the Fund. The number
of shares credited to your Plan account as a result of the reinvestment will
depend upon the relationship between the Fund's market price and its net asset
value per share on the record date of the distribution or dividend, as
described below:
. If the net asset value is greater than the market price (the Fund is
trading at a discount), AST, as Plan Agent, will buy Fund shares for your
account on the open market on the New York Stock Exchange or elsewhere.
Your dividends or distributions will be reinvested at the average price
AST pays for those purchases.
. If the net asset value is equal to the market price (the Fund is trading
at parity), the Fund will issue for your account new shares at net asset
value.
. If the net asset value is less than but within 95% of the market price
(the Fund is trading at a premium of less than 5%), the Fund will issue
for your account new shares at net asset value.
. If the net asset value is less than 95% of the market price (the Fund is
trading at a premium of 5% or more), the Fund will issue for your account
new shares at 95% of the market price.

If AST begins to buy Fund shares for your account at a discount to net asset
value but, during the course of the purchases, the Fund's market price
increases to a level above the net asset value, AST will complete its
purchases, even though the result may be that the average price paid for the
purchases exceeds net asset value.
12

THE SWISS HELVETIA FUND, INC.
--------------------------------------------------------------------------------
Dividend Reinvestment Plan (Unaudited) (concluded)

WILL THE ENTIRE AMOUTN OF MY DISTRIBUTION OR DIVIDEND BE REINVESTED?
The entire amount of your distribution or dividend, payable in cash, will be
reinvested in additional Fund shares. If a balance remains after the purchase
of whole shares, your account will be credited with any fractional shares
(rounded to three decimal places) necessary to complete the reinvestment.

HOW CAN I SELL MY SHARES?
You can sell any or all of the shares in your Plan account by contacting AST.
AST charges $15 for the transaction plus $.10 per share for this service. You
can also withdraw your shares from your Plan account and sell them through your
broker.

DOES PARTICIPATION IN THE PLAN CHANGE THE TAX STATUS OF MY DISTRIBUTIONS OR
DIVIDENDS?
No. The distributions and dividends are paid in cash and their taxability is
the same as if you received the cash. It is only after the payment of
distributions and dividends that AST reinvests the cash for your account.

CAN I GET CERTIFICATES FOR THE SHARES IN THE PLAN
AST will issue certificates for whole shares upon your request. Certificates
for fractional shares will not be issued.

IS THERE ANY CHARGE TO PARTICIPATE IN THE PLAN?
There is no charge to participate in the Plan. You will, however, pay a pro
rata share of brokerage commissions incurred with respect to AST's open market
purchases of shares for your Plan account.

HOW CAN I DISCONTINUE MY PARTICIPATION IN THE PLAN?
Contact your broker or AST in writing. If your shares are in a Plan account,
AST will send you a certificate for your whole shares and a check for any
fractional shares.

WHERE CAN I DIRECT MY QUESTIONS AND CORRESPONDENCE?
Contact your broker, or contact AST as follows:

By mail:
American Stock Transfer & Trust Company
PO Box 922
Wall Street Station
New York, NY 10269-0560

Through the Internet:
www.amstock.com

Through AST's automated voice response
System:
1-888-556-0425

AST will furnish you with a copy of the Terms and Conditions of the Plan
without charge.
13

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A SWISS THE SWISS
INVESTMENTS ---------------------------
FUND HELVETIA
---------------------------
FUND, INC.
---------------------------
www.swz.com

THE SWISS HELVETIA FUND, INC.
EXECUTIVE OFFICES
The Swiss Helvetia Fund, Inc.
1270 Avenue of the Americas
Suite 400
New York, New York 10020 QUARTERLY REPORT
1-888-SWISS-00 FOR THE
(212) 332-2760 PERIOD ENDED
http://www.swz.com MARCH 31, 2005